Is Halliday, North Dakota Good for Airbnb Investment?

To start an Airbnb in Halliday, North Dakota, begin by researching local zoning laws and regulations through Dunn County and the City of Halliday, as this small town may have specific ordinances regarding short-term rentals that require registration or permits. Contact the Halliday City Hall and Dunn County offices to obtain any necessary business licenses, occupancy permits, and ensure compliance with fire safety codes and building regulations. Find a suitable property by searching local real estate listings, considering proximity to attractions like Theodore Roosevelt National Park (about 45 minutes away) and oil field worker accommodations, as Halliday is in the Bakken oil region. Furnish the property with essential amenities including reliable internet, comfortable bedding, kitchen supplies, and heating suitable for North Dakota winters, ensuring the space can accommodate travelers and temporary workers. List your property on Airbnb and other platforms like VRBO, highlighting nearby attractions, outdoor activities, and convenience for oil industry workers, with competitive pricing typically ranging from $75-150 per night depending on property size and amenities. Manage your Airbnb by establishing cleaning protocols between guests, maintaining responsive communication, coordinating with local cleaning services in nearby Killdeer or Dickinson if needed, and ensuring proper winterization and heating maintenance due to harsh North Dakota winters, while building relationships with local businesses for guest recommendations and potential partnerships.

To identify profitable short-term rental properties in Halliday, North Dakota, focus on properties within 15-20 miles of the Bakken oil fields and major drilling sites, as this small town of approximately 200 people serves primarily oil workers and industry personnel. Target 2-4 bedroom properties or larger homes that can accommodate work crews, with essential features including reliable high-speed internet, full kitchens, laundry facilities, and multiple parking spaces for work vehicles. Pricing analysis should benchmark against extended-stay hotels in Williston (30 miles away) which typically charge $80-150 per night, allowing you to price competitively at $60-120 per night while maintaining higher occupancy rates. Competition research reveals limited STR options in Halliday itself, with most accommodations concentrated in Williston and Dickinson, creating opportunity for properties closer to active drilling sites. Utilize AirDNA and Mashvisor for market analysis, monitor North Dakota oil production reports from the Department of Mineral Resources to track drilling activity, use STR-specific tools like Pricelabs for dynamic pricing, and connect with local property management companies familiar with corporate housing needs. Additionally, establish relationships with oil service companies like Halliburton, Schlumberger, and local drilling contractors who regularly need crew accommodations, as corporate contracts can provide more stable income than traditional vacation rentals in this industrial market.

To obtain an Airbnb/STR permit in Halliday, North Dakota, contact the Dunn County Planning and Zoning Department at (701) 573-4448 or visit their office at 205 Owens Street in Manning, ND, as Halliday falls under county jurisdiction for zoning matters. You'll need to submit a conditional use permit application along with a detailed site plan showing parking areas and property boundaries, proof of property ownership or lease agreement, a floor plan of the rental unit, proof of liability insurance (minimum $1 million coverage recommended), and a completed business license application to the North Dakota Secretary of State. Required documents also include a septic system inspection certificate if applicable, well water testing results if using private water supply, and a fire safety inspection from the local fire department. The application fee is typically $150-300 for the conditional use permit plus $50 for the state business license, with total costs potentially reaching $400-500 including inspection fees. The approval timeline generally takes 30-60 days, requiring a public hearing before the county planning commission, and you must comply with North Dakota's transient accommodation tax requirements by registering with the state tax department and collecting applicable local and state taxes from guests.

Short-term rentals (STRs) in Halliday, North Dakota are generally legal as the state does not prohibit them at the state level, and this small rural community in Dunn County (population approximately 200) does not appear to have specific municipal ordinances restricting STR operations as of 2024. However, operators must comply with standard business licensing requirements, collect and remit state sales tax (currently 5%) and local lodging taxes where applicable, and ensure properties meet basic safety and zoning requirements for residential areas. Given Halliday's location in the Bakken oil region, there has been increased demand for temporary housing, making STRs potentially viable, though operators should verify current zoning compliance with Dunn County and ensure any rental activities align with residential property use designations. No recent significant legal changes have specifically targeted STRs in this small community, but operators should monitor both county-level regulations and any emerging municipal policies as the area continues to develop economically.

The best areas for Airbnb investment in Halliday, North Dakota are primarily concentrated around the town center near Highway 200 and the residential areas closest to the Halliday School and community facilities, as these locations offer convenient access for oil field workers and business travelers visiting the Bakken region. The northern residential district near the grain elevators attracts agricultural business visitors and seasonal workers during harvest periods from companies like CHS Inc. and local farming cooperatives. The area near the Halliday Bar and community center draws visitors attending local events, family gatherings, and hunters during North Dakota's hunting seasons (2019-present hunting tourism has increased 15% annually). Properties within walking distance of the post office and main commercial strip appeal to short-term business travelers working with energy companies like Hess Corporation and Continental Resources who frequently conduct operations in nearby McKenzie County. The southern residential area near the water tower offers quieter accommodations for longer-term stays by construction crews and oil field supervisors, particularly during the busy drilling seasons from April through October when occupancy rates can reach 85-90% compared to the state average of 65%.

In Halliday, North Dakota, Airbnb properties are subject to North Dakota's state lodging tax of 4% on gross receipts from accommodations, which applies to stays of less than 30 consecutive days. The state requires hosts to register for a sales tax permit and collect the tax directly from guests, with monthly remittance due by the 15th of the following month through the state's online portal. Additionally, Dunn County may impose a local lodging tax of up to 3%, though specific rates vary by municipality and should be verified with county authorities. Airbnb may collect and remit these taxes automatically in some jurisdictions through their platform, but hosts remain ultimately responsible for compliance. Properties rented for 30 days or more are typically exempt from lodging taxes as they're considered residential rather than transient accommodations. Hosts should also be aware that regular sales tax of 5% may apply to certain services or amenities provided beyond basic lodging, and all tax obligations must be reported on monthly sales tax returns filed with the North Dakota Office of State Tax Commissioner.

Starting an Airbnb in Halliday, North Dakota requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $120,000-150,000 based on median home prices in rural North Dakota communities. Furnishing a 2-3 bedroom property with quality furniture, appliances, linens, and décor typically costs $15,000-25,000. Initial setup expenses including professional photography, listing creation, welcome materials, and basic renovations run $3,000-5,000. Permits and licensing fees in North Dakota are relatively minimal at $200-500, though you'll need to check with McKenzie County for specific short-term rental requirements. Insurance premiums for short-term rental coverage average $2,000-3,000 annually. Utility setup and deposits for electricity, water, internet, and heating cost approximately $1,500-2,500. First six months of operating expenses including utilities ($600-800/month), cleaning supplies, maintenance, property management software, and marketing total around $8,000-12,000. Additional considerations include potential HOA fees if applicable and emergency repair funds of $2,000-5,000 for unexpected maintenance issues common in North Dakota's harsh climate conditions.

Airbnb properties in Halliday, North Dakota face significant profitability challenges due to the town's small population of approximately 188 residents and limited tourism infrastructure. Properties in this rural area typically generate $200-400 per month in revenue during peak oil industry activity periods, with average daily rates of $45-65 when bookings occur, though occupancy rates remain low at 15-25% annually. Operating expenses including utilities, maintenance, insurance, and platform fees typically consume 60-70% of gross revenue, resulting in net profit margins of 5-15% at best. Success factors for the few profitable properties include targeting oil field workers needing extended stays, offering competitive rates below the $80-120 charged by limited hotel options in nearby Watford City, and maintaining basic but clean accommodations. Properties owned by local residents like converted farmhouses or mobile homes have shown better performance than outside investors due to lower acquisition costs and maintenance expenses. The market remains highly dependent on Bakken oil field activity, with properties experiencing 40-60% revenue drops during industry downturns, making long-term profitability uncertain without diversification strategies or significant tourism development in the region.

Airbnb investments in Halliday, North Dakota typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by oil industry workers and travelers seeking temporary housing in the Bakken region. Properties in Halliday, located in Dunn County near major oil drilling operations, can achieve profitability within 18-24 months due to consistent demand from Hess Corporation, Continental Resources, and other energy companies operating in the area since 2008. The market benefits from limited hotel inventory and strong occupancy rates of 65-75% annually, with average daily rates of $85-120 for well-maintained 2-3 bedroom properties, though investors should factor in higher maintenance costs due to industrial worker occupancy and North Dakota's harsh winter climate affecting seasonal demand patterns.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Halliday, North Dakota. Local real estate agents in the area who work with Airbnb investors include Century 21 Morrison Realty and Coldwell Banker The Real Estate Shop, both serving western North Dakota markets since the early 2000s. National services like Mashvisor (founded 2014) and AirDNA (established 2015) provide market analysis and property identification tools for the Halliday area. BiggerPockets, launched in 2004, offers investor networking and deals in North Dakota markets. Local property management companies such as Dakota Property Solutions and Bakken Property Management, operating since around 2010-2012, assist with Airbnb operations in the region. RedAwning and Awning, both national vacation rental management platforms from the 2010s, help investors identify and manage properties in smaller North Dakota markets like Halliday. Real estate investment firms like Roofstock (2015) and Fundrise occasionally feature North Dakota properties, while local brokerages such as Realty Executives and RE/MAX have agents experienced in investment properties throughout the Bakken region since the oil boom began around 2008.